Sales Growth
Annual sales growth, organic sales, and acquisitions, over a business cycle, should be >8 percent.
How we will achieve the target:
The target for annual sales growth will be achieved through a combination of acquisitions and organic growth. Organic growth will increase as an increasing share of the Group's sales is focused on industries and geographies with high structural growth.
Outcome 2024: 1%
Commentary on outcome in 2024
Net sales were on a par with the preceding year and amounted to SEK 34,170 M (34,286). Organic sales were unchanged compared to 2023. Structural changes increased sales by 1 percent and currency movements were -1 percent compared with the preceding year. Total sales growth, organic as well as structural, averaged 6.9 percent over the past five years.
EBITA margin
How we will achieve the target: The EBITA margin target will be achieved through a combination of parts of the business climbing higher up the value ladder, which increases the margin, and through higher growth in those parts of the business that already have a margin above the target level.
Outcome 2024: 18%
Commentary on outcome:
The EBITA margin was 18.0 percent (17.5). Earnings and the margin were the highest ever for a single year. The EBITA margin averaged 17.1 percent over the past five years.
Return on capital employed
Return on capital employed (ROCE), excluding items affecting comparability, over a business cycle should be >15 percent.
Outcome 2024: 12.0%
Commentary on outcome in
The return on capital employed (ROCE), excluding items affecting comparability, was 12.0 percent (12.9). The return measure was impacted by acquisitions with initially lower returns. ROCE averaged 13.4 percent over the past five years.